California Court of Appeal

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Captial Research & Mgmt. Co. v. Brown, B189249

Sustaining of demurrer to enforcement action brought by defendant based on implied preemption under the National Securities Markets Improvement Act of 1996, 15 U.S.C. section 77r, is reversed as the NSMIA's savings clause, permitting certain state officers to bring enforcement actions with respect to fraud or deceit, or unlawful conduct by a broker or dealer, is sufficiently broad to permit defendant attorney general to pursue injunctive relief and penalties against a covered security's investment advisor and wholesale broker-dealer who allegedly made inaccurate or inadequate representations to purchasers.

Appellate Information

  • Decided 01/26/2007
  • Published 01/26/2007

Judges

  • VOGEL, J.

Court

  • California Court of Appeal

Counsel

  • For Appellees:
  • Bill Lockyer and Edmund G. Brown, Jr., Attorneys General, Thomas Greene, Chief Assistant Attorney General, Mark J. Breckler and Jon M. Ichinaga, Deputy Attorneys General, for Defendant and Appellant and Plaintiff and Appellant., Barbara A. Jones, Deborah Zuckerman and Michael Schuster for AARP Foundation as Amicus Curiae on behalf of Defendant and Appellant and Plaintiff and Appellant., Saint Martin & Fan, Amy Fan, Los Angeles;  Rex Staples, Stephen Hall, Joseph Brady, and Lesley Walker, for North American Securities Administrators Association, Inc. as Amicus Curiae on behalf of Defendant and Appellant and Plaintiff and Appellant., Skadden, Arps, Slate, Meagher & Flom, Raoul D. Kennedy, San Franciso, and Seth M. Schwartz, for Plaintiffs and Respondents and Defendants and Respondents.
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